How Gilat Satellite Networks Ltd. (NASDAQ:GILT) Could Add Value To Your Portfolio

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Gilat Satellite Networks Ltd. (NASDAQ:GILT) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of GILT, it is a company with great financial health as well as a a great history of performance. Below, I've touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Gilat Satellite Networks here.

Flawless balance sheet with proven track record

Over the past few years, GILT has more than doubled its earnings, with its most recent figure exceeding its annual average over the past five years. Not only did GILT outperformed its past performance, its growth also exceeded the Communications industry expansion, which generated a 28% earnings growth. This is what investors like to see! GILT's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This implies that GILT manages its cash and cost levels well, which is a key determinant of the company’s health. GILT seems to have put its debt to good use, generating operating cash levels of 2.55x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.

NasdaqGS:GILT Income Statement, May 8th 2019
NasdaqGS:GILT Income Statement, May 8th 2019

Next Steps:

For Gilat Satellite Networks, I've compiled three pertinent factors you should further examine:

  1. Future Outlook: What are well-informed industry analysts predicting for GILT’s future growth? Take a look at our free research report of analyst consensus for GILT’s outlook.

  2. Valuation: What is GILT worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether GILT is currently mispriced by the market.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of GILT? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.

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